After a brutal run of trading last year, tech stocks have seen some recovery early in 2023. But despite climbing approximately 9.5% year to date, the tech-heavy Nasdaq Composite index's level remains down roughly 29% from its peak level.

The index is still squarely in bear market territory, and many technology stocks are trading down by more than half from previous highs. But bearish conditions won't last forever, and investors who put their money behind the right companies could see very strong returns in relatively short order.

With that in mind, read on for a look at three stocks that are down massively from previous highs that are capable of bouncing back to double by 2025. 

A bear in front of a chart line going down.

Image source: Getty Images.

1. Meta Platforms

Meta Platforms (META 0.68%) faces macroeconomic headwinds from the digital advertising industry and adverse impacts from changes Apple made to user-data tracking on its mobile platform. Its business struggled over the last year, but the social media company's recent fourth-quarter earnings report contained results that were roundly better than expected, and the stock still offers plenty of upside. 

On top of earnings catalysts from cost-cutting, revenue of $32.17 billion in the period beat the average analyst estimate for sales of $31.53 billion. And the company saw better-than-anticipated performance across some key engagement metrics.

Daily active users (DAUs) for its Facebook platform rose 4% to hit 2 billion, and total average revenue per user (ARPU) across the company's family of services came in at $10.68. The average analyst estimate had called for 1.99 billion DAUs and ARPU of $10.63 billion.

Overall revenue fell 4% year over year due to headwinds in the ad market, but DAUs across the company's services rose 5% year over year to hit $2.96 billion, and monthly active users were up 4% at 3.74 billion. To paraphrase Mark Twain, it looks like reports of Meta's death may have been greatly exaggerated. 

But despite climbing 45% across this year's trading, the company's share price is still down roughly 54% from its high. 

META PE Ratio (Forward) Chart

META PE ratio (forward) data by YCharts.

And even after a big valuation jump following its better-than-expected fourth-quarter earnings report, Meta is still valued at a reasonable-looking 19 times this year's expected earnings. The company's core platforms continue to look pretty strong, and management is showing it can effectively manage costs.

If Meta can navigate pressures in the digital ad industry and deliver some clear signs of promise for its metaverse initiatives, the stock could bounce back to new highs.

2. Appian 

Low-code software specialist Appian (APPN -0.03%) managed to grow revenue 20% year over year in the fourth quarter, reaching $125.8 million, and higher-margin cloud subscription revenue rose 29% to hit $65.8 million.

Even with the overall macroeconomic climate looking tougher, Appian's midpoint guidance still calls for 15% year-over-year revenue growth in the first quarter and 13.5% growth for the year. With expectations that cloud-subscription revenue will grow roughly 24.5%, the segment should continue to account for a greater portion of overall revenue, boost gross margins, and move the company closer to profitability

Appian is also on track to receive a substantial payout from its suit against its competitor Pegasystems for trade-secret misappropriation. Last year, a circuit court awarded Appian more than $2 billion in damages based on findings that an employee of a government contractor had been hired by Pegasystems to compile competitive materials and provide access to its rival's software.

Even if the damages wind up being reduced in appeals, Appian looks poised to receive a substantial amount from the lawsuit.

With its stock trading down 82% from its high, Appian currently has a market capitalization around $3 billion. Given the potential for a sizable payout from its lawsuit and the fact that the low-code software specialist's business should continue delivering solid growth in the near term, I think the beaten-down stock has a good chance of doubling over the next couple of years.

3. Fiverr International

Fiverr International (FVRR 0.97%) operates a gig-labor marketplace where freelance workers and those looking to hire for jobs on a contract basis can connect. The company saw surging demand for its services at the height of pandemic-driven social distancing, but growth has since seen a dramatic deceleration.

With revenue growth of 4.2% year over year in last year's fourth quarter bringing annual revenue growth to 13.3%, Fiverr has seen substantial growth deceleration. The company expects that trend to continue in the near term, with midpoint guidance calling for growth of roughly 6% this year. 

Given that the business managed to increase sales 57% annually in 2021 and 77% in 2020, it's not surprising that the stock has seen a big valuation pullback. 

Facing a macroeconomic backdrop that's making it more difficult to deliver sales growth, the company is temporarily pivoting from growing the reach of the business to expanding its profitability. Largely through cost-cutting, Fiverr expects that it will be able to increase its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $24 million last year to between $45 million and $55 million this year. 

With the stock down roughly 88% from its high, Fiverr's current market cap of roughly $1.5 billion leaves plenty of room for upside, and I think the stock is capable of posting recovery that will see it double by 2025.